The Deutsche Bank report highlights that the Australian Dollar gained strength after the RBA raised its benchmark cash target rate by 25 basis points to 3.85%. The report indicates that the RBA anticipates further potential hikes to address persistently high inflation, with the Australian Dollar trading at 0.7008 against the US Dollar.
Australian Dollar strengthens post-rate hike
“Following this decision, the Australian dollar (+0.86%) is gaining strength after two consecutive sessions of declines, trading at 0.7008 against the US dollar.”
“Against this background, markets have raised their expectations for a rate increase in May to 79%, with the market anticipating a cumulative tightening of 36 basis points this year.”
